Journal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319-5614

Volume 1, No.3, December 2012

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Characteristics And Skills Of Leadership For Project

Performance
Prof. R. Murugesan, Research Scholar, CMJ University, Shillong, India.

Abstract
Phenomenal changes are happening in the globalized economies around the world. In this hypercompetitive
business environment, new dimensions of leadership are more in demand than ever before for organizational
survival. Often, a project manager relinquishes positional authority and becomes part of the work group to
provide direction, group process facilitation, coordination and support to achieve better results for the
organization. Paradoxically, the project manager does not have the luxury to select the team of his choice as the
members of the project team are assigned from functional disciplines based on the disposition of the discipline
head. Such team members are new to the project environment and face difficulty in coping with the pressures
posed by the project stake holders through the project manager. In the past few decades, the domain of
leadership has seen phenomenal changes. With pure transaction orientation, project managers are not able to
succeed in their profession. Addressing human concerns has assumed greater significance in project
organizations which confront variety and complexity. In this study, the characteristics, skills and styles of
leadership have been analyzed to help project managers to steer their projects to greater success.
Key words
Project management, project performance, project stake holders, skills of leadership, styles of leadership,
theories of leadership, triple constraint

are more common than successes, as evidenced in

INTRODUCTION
Across the nations, enormous resources are
invested in various sectors of economy to improve
the infrastructure for growth and sustainability. In
view of the huge investments made, the value of
project management lies in the efficient
achievement of organizational goals, stakeholder
satisfaction, and a competitive edge (Kerzner,
2006). As a profession in its own right and not just
as an ancillary set of skills possessed by other
professionals, project management has gained
currency in recent decades. An increased awareness
of project status enables leaders to establish
measures of success, enable customer focus and
alignment, quantify value commensurate with cost,
optimize the use of organizational resources,
incorporate quality principles, put strategic plans
into practice, and ensure fast time-to-market
(Project Management Institute, 2004). Inadequate
or inappropriate project leadership is a potential
reason for the negative outcome of projects. There
is an urgent need to address this dominant issue of
leadership of a right kind to contribute to project
success. When projects face challenges like cost
overruns, inordinate delays, scope changes or
quality issues, organizations and project
stakeholders would suffer losses (Kanter & Walsh,
2004).
In spite of the best analytical tools and techniques
employed, most engineering or infrastructure
projects have not succeeded. In yester years, task
orientation in a transactional leadership approach
contributed some major successes. Project failures
other fields throughout history and in contemporary
society (Wysocki, 2007). When major projects get
challenged or face imminent failure due to one
reason or the other, organizations may not only lose
the corporate image but may face the risk of exodus
of valuable skill sets and talent which are built over
time and difficult to recoup. Continually changing
expectations of project stake holders added to the
otherwise complex nature of such projects. More
than ever, there is an urgent need at the current
times to address the dominant issue of leadership of
a right kind to contribute to project performance.
The scarcest resource in todays world is leadership
talent capable of continually transforming
organizations to win in tomorrows world (Tichy &
Eli Cohen, 1997). Available literature to correlate
project leadership with organizational or project
performance is scant. With an integration of the
leadership style theories describing the typical
characteristics, philosophy, skills, and
consequences associated with each major style, this
study is expected to signify the importance to the
profession of project management.
Leadership Styles Theories
Generally accepted major theories of leadership are
the traits, leadership styles, and contingency
theories. Currently amongst the research fraternity,
the styles of leadership and contingency theories
have gained dominance. Apparently, the traits
theory has slowly waned out significance because
of the theoretical, methodological, and practical
problems involved in the process to identify and

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Journal of Business Management & Social Sciences Research (JBM&SSR) ISSN No: 2319-5614
Volume 1, No.3, December 2012
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defend a consistent list of leadership traits for
project performance.
University of Michigan Leadership
Studies
Studies relating to the styles approach of leadership
emerged from the Ohio State University leadership
studies that began in 1945 (Stogdill, 1957). This
study is attributed to a variety of significant find-
ings on leadership, perhaps the most important
contribution being the isolation of Consideration
and Initiating Structure as the basic dimensions of
leadership behavior in formal organizations.
Consideration may be defined as behaviors by
means of which the leader establishes rapport with
his employees, two-way communication, mutual
respect, and understanding. Also it includes
behavior indicating trust and warmth between the
supervisor and his group and emphasizes concern
for the needs of the group members. Initiating
Structure may be defined as behaviors by means of
which the leader facilitates group interaction
toward goal attainment. The leader achieves this
through planning and scheduling, initiating ideas,
organizing the work, defining member roles,
Model of Four Basic Leadership Styles
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assigning tasks, mentoring and goading and push-
ing for productivity and results. The Ohio State
studies on leadership became popular for it was the
first to plot on two separate axes, as opposed to
being on a single continuum depicted till then.
Other Theories of Leadership Styles
The Ohio State and University of Michigan studies
stimulated considerable interest among scholars in
leadership theory and the new such theories
included works of Hersey and Blanchard and Blake
and Mouton. Most of these theories had two things
in common. They identified two basic dimensions
of leadership which resulted in the model of four
basic leadership styles as depicted in Figure 1. The
four leadership styles depicted vividly in the model
are:
Autocratic Leader
Laissez-Faire Leader
Human Relations Leader
Democratic Leader
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Descriptions of Autocratic and Laissez Faire Leaders
Leadership Style Autocratic Leader
Leadership Style Characteristics
Emphasis on Performance High emphasis on performance
Emphasis on people Low emphasis on people
Leadership Philosophy
Assumptions about people People tend to be lazy, undependable,
dislike work, resist responsibility, work
primarily for money, and prefer to be led.
Assumptions about the role Run a tight ship by planning, organizing,
of a leader directing, and controlling the efforts of
Management Skills . h
Planning and Setting It is the leader's job to plan and establish
Objectives objectives
Organizing A formal, centralized structure is used with
carefully defined rules and procedures
Controlling Tight controls are established to assure that
employees do their jobs.
Decision-Making All but minor decisions must be made or
approved by the leader
Motivating Uses close supervision and tight controls,
simplifies and standardizes work, and offers
economic incentives and fringe benefits to
motivate people.
Communicating Communication is primarily one" way,
downward, formal, impersonal and in a
parent to child manner
Developing Development comes from hard work and
experience although some professional
development may be considered if it will re-
sult in greater efficiency and productivity.
Use of rewards and People are rewarded for being obedient and
punishment punished for making mistakes. Punishment
may take the form of withholding attention
or good assignments or making people feel
guilty
Approach to handling Conflicts are either suppressed because they
conflicts interfere with work or they are resolved in
favor of the leader
Approach to handling Attacks people and not the problem and looks
problems and mistakes for a scapegoat or someone to blame when
mistakes are made
Interpersonal relationship Keeps relationships formal and impersonal so
with employees he can remain objective
Use of power and authority The use of power and authority are essential
to maintaining order and high productivity
Delegation practices Fully delegates only low risk jobs
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Laissez-Faire Leader
Low emphasis on performance
Low emphasis on people
People are unpredictable and
trying to understand them is a
waste of time.
Keep a low profile, be obedient,
and don't make waves.
.
Plans and establishes objectives
only if required to do so
Lives with whatever structure he
is given.
Abdicates controlling to
employees
Avoids making decisions as
much as possible.
Leaves people alone. Nothing
seems to work anyway.
Communication is non-commit-
tal, superficial, and avoided.
Leaves development up to em-
ployees. If people want to
develop themselves, that is their
business.
Avoids rewarding or punishing
people
Ignores conflicts and hopes they
will disappear
Ignores problems and mistakes
unless forced to deal with them
Avoids close relationships and
lets employees do pretty much
as they please
Power and authority are
abdicated to whomever wants to
assume them
Responsibilities are assumed by
default rather than through del-
egation
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Performance Appraisals Uses performance appraisal to let employees
know what they are doing wrong
Descriptions of Human Relations and Democratic Leaders
Leadership Style Human Relations Leader
Leadership Style Characteristics
Emphasis on Performance Low emphasis on performance
Emphasis on people High emphasis on people
Leadership Philosophy
Assumptions about people All people are honest, trustworthy, self-
motivated, want to be involved in all
decisions, and will give their best if kept
Assumptions about the role h
Cater to the needs of employees and keep
of a leader them happy because happy people are
productive people
Management Skills . .
Planning and Setting Use group planning and objectives setting
Objectives almost exclusively
Organizing A decentralized, informal, and loosely
controlled structure is used
Controlling Relies almost entirely on the self-contro of
employees
Decision-Making Uses a participative approach for most
decisions and primarily serves as a
discussion leader in helping his group arrive
at decisions
Motivating Involve employees, give continuous positive
reinforcement, and provide for good working
conditions, social relations, and fellowship
Communicating Communication is open and two-way but is
often not genuine when conflict is involved
because of the emphasis on maintaining
harmony and good relations
Developing Any development activities even remotely
related to the job are encouraged
Use of rewards and Rewards and recognition are used at every
punishment opportunity but punishment is rarely ever
used since everyone makes mistakes
Approach to handling Conflict is smoothed over or avoided if it
conflicts might threaten good relations. Conflicts with
the leader, are usually resolved in favor of
Approach to handling l
Mistakes are ignored and problems are given
problems and mistakes to employees to resolve.
Interpersonal relationship Many internal and external activities are
with employees planned to promote close interpersonal
Use of power and authority l i and authority
Power d hare abdicated to
employees
Delegation practices Delegates considerable responsibility but
does not hold employees accountable for
results.
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Either avoids performance
appraisals or gives minimum
compliance to required
appraisal procedures
Democratic Leader
High emphasis on performance
High emphasis on people
Most people are honest, trust-
worthy, self-motivated, and like
responsibility and challenging
k
Arrange organizational condi-
tions to promote teamwork and
high job performance and satis-
faction
Planning ahead and establishing
clear objectives are essential to
effective performance and are
best accomplished with heavy
employee involvement
A decentralized and flexible
structure is used with clearly
defined responsibilities and an
open participative work
i
Control is distributed among the
leader and the employees
The leader is a decisive decision
-maker who emphasizes team
decision-making but also makes
some decisions alone
Provide good working
conditions and assure that jobs
are challenging and offer
opportunities for growth,
responsibility, achievement,
Communication is open, two-
way and genuine. Leveling and
honesty are encouraged
Emphasizes personal,
employee, and team
Good work is recognized and
rewarded and punishment is
used only as a last resort
Conflicts are openly confronted
Attacks problems and not
people and emphasizes finding
Maintains a close but objective
relationship with employees
Believes that power and
authority are earned, not
Delegates considerable
responsibility and holds
employees accountable for
l
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Performance Appraisals Uses performance appraisal to let employees Uses performance appraisal to
know what they are doing right let employees know what they
are doing right and wrong.

Probable consequences resulting from the Four Basic Leadership Styles:

Autocratic Leader
Although the emphasis is on
high
productivity, it often breeds
counter forces of antagonism
and restriction of output.
Frequently results in hostile
attitudes, a suppression of
conflict, distorted and
guarded
communications, high
turnover and absenteeism,
low productivity and work
quality, and a
preoccupation with rules,
procedures, red tape,
working conditions, status
symbols, and trying to
cater to the whims of the
boss. Tends to develop
dependent and non-
creative employees who
are afraid to seek
responsibility.
Laissez-Faire Human Relations Leader
Leader
Employees become While this style may keep
apathetic, employees happy, there is
disinterested, and little evidence to support
resentful of the the notion that keeping
organization and employees happy and
their leader. Results treating them well results
in the lowest in high productivity. The
employee preoccupation with
productivity and keeping people happy and
satisfaction of all involved often interferes
the leadership with high achievement,
styles. causes employees to lose
respect for their leader,
results in the emergence of
informal leaders, and
causes problems to be
smoothed over. Such an
atmosphere can be
frustrating to goal-oriented
people.
Democratic Leader
Results in high employee
productivity, satisfaction,
cooperation, and
commitment. Reduces
the need for controls and
formal rules and
procedures. Results in
low employee
absenteeism and turn-
over. Develops
competent people who
are willing to give their
best, think for
themselves,
communicate openly,
and seek responsibility.

The Managerial Grid Theory
The Managerial Grid developed by Blake and
Mouton (1978) is a kind of transitional theory
between the leadership styles theories and the
contingency theories. This theory describes the two
basic, and at times contrasting, dimensions of
leadership as concern for production and concern
for people. According to this model, the term
concern for is a theoretical variable reflecting basic
attitudes or styles of control and it does not reflect
actual production or effectiveness. The horizontal
axis of the management grid represents concern for
production and the vertical axis represents concern
for people as mature and healthy relations among
those engaged in production. Each axis is on a 1 to
9 point scale, with 1 representing a minimum
interest or concern and 9 a maximum interest or
concern. In effect, the Managerial Grid theory
yields five basic styles of leadership:
Impoverished Style (1,1)
Authoritarian Style (9,1)
Middle of the Road Style / Organization
Man (5,5)
Country Club Style (1,9) and
Team Builder Sty (9, 9)

The 9*9 Cell Managerial Grid Theory

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Volume 1, No.3, December 2012
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The impoverished style, located at the lower left-
hand corner of the grid, point (1, 1), is
characterized by low concern for both people and
project; it is an indicator of an incompetent
manager whose primary objective is to stay out of
trouble.
The authoritarian style, located at the lower right-
hand corner of the grid, point (9, 1), is identified by
high concern for project and low concern for
people; it is an indicator of the task oriented style
of the manager whose primary objective is to
achieve the project/ organization's goals, and
employee needs are not considered in the process.
The middle-of-the-road style, located at the middle
of the grid, point (5, 5), maintains a balance
between peoples needs and the
project/organization's goals; its primary objective is
to maintain employee morale at an optimum level
to get the job done for the project progress and to
meet the organization's goals.
The country club style, located at the upper left-
hand corner of the grid, point (1, 9), is
distinguished by high concern for people and a low
concern for project; it is an indicator of populist
and selfish manager whose primary objective is to
create a secure and comfortable atmosphere where
the managers expects the team to respond
positively.
The team builder style, located at the upper right-
hand of the grid, point (9, 9), is characterized by
high concern for people and project; its primary
objective is to establish cohesion and foster a
feeling of commitment among the team. This style
is ideal and rarely evidenced in a project
environment
The following are factors of interest while dealing
with the Blake and Mouton's leadership styles
theory. The apparently contrasting two leadership
dimensions (concern for production and concern
for people) can be inter-dependent rather then
independent. These two dimensions describe basic
attitudes rather than specific behaviors of people.
Using the Managerial Grid model, a competent
project manager can adopt a style that reflects the
maximum concern for both people and project,
traversing diagonally from the practical point (5, 5)
towards the ideal point (9, 9), team-oriented style.
This important factor can make all the difference it
deserves in the current times of managerial crisis.
With this model, a leader can create a variety of
behaviors while using the same leadership style.
Current Theories on Leadership Styles
Bureaucratic: In this style, leaders work by the book.
They follow rules rigorously, and ensure that their
people follow procedures precisely as well. This is
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an appropriate leadership style for work involving
safety risks (such as working with machinery, with
toxic substances, or at dangerous heights) or where
large sums of money are involved. Bureaucratic
leadership is also useful in organizations where
employees do routine tasks (as in manufacturing).
A downside to this style of leadership is that it is
ineffective or counter-productive with teams and
organizations that rely on flexibility, creativity, or
innovation. Incidentally, bureaucratic leaders
achieve their position because of their ability to
conform to and uphold rules, not because of their
qualifications or expertise. In such situations,
ambitious and capable team member might resent
or exit with frustration.
Transactional: This leadership style starts with the
idea that team members agree to obey their leader
when they accept a job. The transaction usually
involves the organization paying team members in
return for their performance and compliance. The
leader has a right to punish a team member if his
work is not up to the standard. Though this might
sound controlling and paternalistic, transactional
leadership offers a few benefits. This style of
leadership clarifies everyone's roles and
responsibilities. Since transactional leadership
judges team members on performance, dynamic
and ambitious team members are motivated with
the extrinsic rewards associated. A downside to this
leadership style is that team members can do
nothing to improve their job satisfaction. In such a
situation, they can feel stifling and often leading to
high staff turnover. In reality, transactional
leadership is a type of management and not a
leadership style, as the focus is on short-term tasks.
This style offering myopic gains in other domains
can have serious implications in creative work
environment.
Transformational: James MacGregor Burns
developed the term transformational leader (Burns,
1978). Leaders bearing this style inspire
enthusiasm in their teams and are energetic in
motivating others to move forward. The excitement
and commitment from the team yields enormous
benefit. Transformational leadership describes a
process by which leaders bring about significant
positive changes in individuals, groups, teams, and
organizations by using inspiration, vision, and the
ability to motivate followers to transcend their self-
interests for a collective purpose. A downside to
this kind of leadership is that the leader may
believe more on self than in his team. When this
type of a leader leaves an organization, it can cause
a great risk to the project or even the entire
organization might collapse. This feeling of
invincibility can ruin sprit of the team or the entire
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organization. Quite often, a project manager with
charismatic leadership for repeat success in
projects is preferred by project sponsors and
success is directly attributed to the charismatic
leader.
Project Management Profession
Conventionally, project management involves
facets of planning, organizing, securing, and
managing resources to achieve stated project
milestones of the business or industry. Until 20
years ago, the profession of project management
was focused on the characteristics of effective
project managers, the role of project teams; and
project management tools, techniques, models, and
processes (Pinto, Cleland, & Slevin, 2003). The
Project Management Institute (PMI, 2004), defines
project management as the application of
knowledge, skills, tools, and techniques to project
activities to meet project requirements.
Organizations employ project management
processes and teams to achieve their corporate
goals and to gain operational efficiencies (Palmer,
2002). Most of these organizations depend on
project structures and tools, establishing and
adopting effective project management practices to
ensure organizational sustainability and economic
viability (Verzuh, 2003). Some of the challenges
faced by the project team could be attributed to the
culture of its organization. With the right blend of
leadership traits, project managers can enhance the
success rate of projects. More than ever before, the
enterprise is changing and faster (Murugesan,
2006). A computer-integrated manufacturing
(CIM) system is one in which many manufacturing
functions are linked through an integrated
computer network. These functions can include
production planning and control, shop floor
control, quality control, computer-aided
manufacturing, computer-aided design, purchasing,
marketing, and possibly other functions. The
objective of a computer integrated manufacturing
Triple Constraint Model
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system is to allow changes in product design, to
reduce costs, and to optimize production
requirements.
Contributing Factors for Project
Performance
Project management is primarily concerned with
the project's schedule, cost and scope as typified in
the project iron triangle. These three prominent
parameters are so inter-dependent on each other
that any change in one variable will invariably
affect the other two variables. This effect is termed
triple constraint and is very common in the project
management parlance. These factors are the
traditional variables measured to determine the
project success (Kerzner, 2006). Project complexity
is ever increasing in all fields and domains that
include industrial construction, infrastructure,
health care and information technology. Though
there are several successes in large projects,
failures are more common than successes. While
project failures were contributed to quantitative
concepts three decades ago, qualitative factors are
attributed to serious project failures than to
successes in the new century. Some times, projects
are cancelled way before completion, or they are
completed late and well over the sanctioned
budget. We also know of projects that do not meet
the needs of the project stakeholders and/or do not
perform according to specifications. The Triple
Constraint is a model of constraints that a leader
confronts during various phases of project
execution. It is an effective model to measure the
outcome of project performance and is often used
to evaluate the ability of a leader to manage a
project to deliver expected results while managing
time and cost without compromising on quality and
safety. The Triple Constraint concept reflects the
fact that a project manager can hope to modify the
value of one of these parameters, but only at the
expense of the other two.
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Several factors contribute to project performance,
some of which can be so critical to drive a project
to sure failure. The following is a list of potential
factors that might challenge a project:
Lack of top management support
Not the right person for project
management role
Team members with lack of skills or
motivation
Lack of measures to evaluate project
progress for timely intervention
Lack of skill and will to meet the
challenges of changing scope
Poor linkage to business strategy of the
organization
No risk management in place
From an analysis of several project outcomes, it is
observed that the softer side of project management
such as organizational culture and organizational
politics emerging as strong influencers. Effective
leaders act as conducts in creating culture,
channeling and molding behaviors of team
members for a more positive outcome.
Leadership for Effective Project
Performance
A great leadership component is essential for
effective project performance in a typical project
environment where a high degree of uncertainty is
confronted with the cost, schedule and scope
changes of a project during the project life cycle.
According to Wysocki (2007), the project manager
should have five skills: experience, leadership,
technical capability, interpersonal competence, and
management familiarity. Whereas, Gray and
Larson (2008) categorized five factors for a
successful project manager: task, position,
inspiration, relationship, and personal. The matrix
organization structure is more common in project
driven organizations offering the combined
advantages of a pure functional structure and the
product organizational structure (Kerzner, 2006).
With this structure, the project manager is able to
deal with the continual change of the project with
his communication skills, alliance building and
empowerment of the project team to make needed
decisions quickly. Though the matrix type of
structure is more complex to manage and control, it
fits well in an environment of change, where
adaptation is the rule, rather than the exception
(Kerzner, 2006).
An effective project manager exhibits both
transactional and transformational leadership
behaviors. Transactional leadership considers the
leader and follower interacting through a reward
and punishment criterion, where the follower will
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seek rewards and recognition for adherence to the
wishes of the project manager while he may be
reprimanded for acting in manners contrary to the
directions (Bass, 1990). Whereas, the
transformational leader seeking to inspire their
followers through emotional stimulation and
personal characteristics, such as charisma (Bass,
1990). Schedule and scope oriented engineering
projects with multiple business objectives in the
life of the project favor project managers exhibiting
transactional project management behaviors. This
kind of leadership style could be very effective in a
transactional work environment, such as a
manufacturing or construction industry (Avolio &
Bass, 2002). With a blend of skills as depicted in
the Managerial Grid developed by Blake and
Mouton, the success rate of a project manager
exhibiting behaviors such as communicating the
goals in an intellectual and emotional manner for
projects that require vision, organizational
commitment and business unit interaction appears
to be very high. To achieve project success, the
project leader needs to network with others and
build coalitions to ensure they are willing to listen
to him and provide all the support as necessary
(Pinto, 1996). The project manager, in this
situation, is displaying an ability to leverage their
relationship-side of their personality, seeing people
as an important source of assistance in achieving
project outcomes. In the fast changing world, the
field of project management has made great strides
to match the needs of the dynamic business
environment not seen in older generations. Projects
are becoming increasingly complex and
interconnected with change, complexity and
innovation as the new paradigm. Organizations that
do not adapt to this new reality will be lost in the
rush (DeCarlo, 2004).
Conclusion
There is increasing concern on the continuing state
of the euro zone crisis and soaring current account
deficits and other fiscal anomalies confronted by
most nations in the developing economy. For
organizations whose staple is executing business
strategies through projects, it is imperative for
effective project performance, if not a sure success
on every count. For sustenance and growth in this
hypercompetitive business environment,
contemporary organizations are increasingly
concerned to bridge the gap of needed leadership
skills to face the onslaught of global competition in
every part of the globe. With the right blend of
leadership styles and approach, projects can be
steered to sure success to not only benefit
organizations but also to meet the aspirations of the
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project stake holders. This study may add to value
to the field of leadership by contributing literature
on the characteristics of effective leadership to
enhanced project performance.
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